Acquisition Construction Financing


Financing for New Construction or Substantial Rehabilitation of Hospitals.


  • Borrowers can be non-profit, for-profit or publicly owned facilities. No more than 50% of revenues may be attributable to chronic convalescence and rest, drug and alcoholic, epileptic, nervous and mental, mental deficiency or tuberculosis.
  • Combines construction and permanent financing approved at the same time.
  • Maximum loan to value is 90%; term is 25 years with full amortization.
  • Loan is pre-payable, assumable, and non-recourse.
  • Requires a 1.25x debt service coverage.
  • Loans funded with tax-exempt bonds or Government National Mortgage Association (GNMA) Securities.
  • Projects must comply with the State’s eligibility requirements for licensure and operating standards.
  • Loans cover cost of moveable equipment and the refinancing of existing debt.


0.3% Application Fee to FHA
0.5% Mortgage Insurance Premium
0.5% Inspection Fee
2.0% Maximum Financing Fee
1.5% Maximum Placement Fee
2.0% Costs of Issuance for Bond Transactions, with the approval of HUD.

An annual 0.5% Mortgage Insurance Premium is paid to FHA as part of the monthly mortgage payment requirements. Additional fees will be required for financial feasibility studies and environmental reports. The cost of these reports may be included in the financing.


  • Full escrows required for property insurance, real estate taxes, and FHA mortgage insurance premium.
  • Mortgage reserve fund required equal to one year’s debt service after 5 years and two years debt service after 10 years.
  • Working Capital Deposit equal to 2% of the mortgage required at closing. This deposit may be capitalized in the mortgage at closing for non-profit borrowers.
  • Letter of credit may be provided at initial closing to meet project cash requirements. This will be drawn upon by the end of the construction period.

Other Financing Programs

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CFO Capital Partners, its affiliates and principals are not a United States Securities Dealer nor Broker nor US Investment Adviser.  CFO Capital Partners, its affiliates and principals is a  Consulting Firm and in some instances a Private Investor. All Emails and related correspondence are never to be considered a solicitation for any purpose in any form or content. We do not intend to, nor do we, provide investment advice or counsel to any particular transaction. You, as the Recipient, hereby acknowledges this warning and disclaimer. If acknowledgment is not accepted, Recipients must return the document copies, in their original condition, to the Sender via email or postal services immediately